AWH Announces Second Quarter 2025 Financial Results

Executive Summary

• Ascend Wellness Holdings reported Q2 2025 net revenue of $127.3 million and an Adjusted EBITDA of $28.6 million (22.4% margin).
• The company fully retired its $60 million term loan through a combination of $10 million in cash on hand and $50 million raised via a private placement of 12.75% Senior Secured Notes due July 2029.
• The company generated $17.8 million in operating cash flow, marking the tenth consecutive quarter of positive operating cash flow, and ended the quarter with $95.3 million in cash.

Key Details

• Revenue Performance: Total net revenue was $127.3 million (flat quarter-over-quarter, -0.5%). Retail revenue increased 2.5% to $86.5 million, while wholesale revenue decreased 6.4% to $40.8 million.
• Profitability Metrics:
  • Net Loss: $24.4 million (compared to $19.3 million in Q1 2025).
  • Adjusted EBITDA: $28.6 million (up 5.7% from Q1 2025).
  • Adjusted Gross Profit: $55.3 million (43.4% margin, up from 40.8% in Q1).
  • Gross Profit: $41.4 million (32.5% margin).
• Debt Refinancing:
  • Retired $60 million term loan.
  • Issued $50 million in 12.75% Senior Secured Notes due July 2029 at 97.5% of face value.
  • Total debt profile now includes $235 million issued in July 2024 and $15 million issued in January 2025, plus the new $50 million tranche.
• Cash Position & Flow:
  • Cash and cash equivalents: $95.3 million.
  • Cash from Operations: $17.8 million.
  • Free Cash Flow: $12.1 million.
  • Net Debt: $254.3 million.
• Operational Updates:
  • Added 5 retail locations in H1 2025, bringing total store count (including partners) to 44.
  • Medium-term target is 60 total stores.
  • Commercialized 225 SKUs in H1 2025, with ~300 additional SKUs in development.
  • Launched "High Wired" infused flower/pre-roll line; achieved top-selling position in Illinois and Massachusetts.
  • Launched new integrated e-commerce ecosystem powered by Dutchie with AI-driven recommendations and a tiered loyalty program ("Ascenders Club").
• Share Repurchases: Repurchased approximately 1.9 million shares in Q2 2025 via NCIB, totaling ~2.7 million shares since launch in January 2025.

Notable Quotes

• Sam Brill, CEO: "The retirement of our prior term loan strengthens our balance sheet and extends our financial runway, allowing us to execute on our strategic priorities with greater focus and stability."
• Frank Perullo, Co-Founder and President: "Q2 delivered strong progress... We also ramped up commercialization of higher-margin, top-selling SKUs... Our products continue to gain strong consumer traction, maintaining the number two brand house position by both sales and units across Illinois, Massachusetts, and New Jersey combined for another consecutive quarter."
• Roman Nemchenko, CFO: "We continue to build a strong, scalable platform to support disciplined expansion... we reached a significant milestone by achieving positive operating cash flow for ten consecutive quarters and have driven improvements through strong cost controls."